If things go according to plan, Japan will have its own bitcoin regulations by the beginning of next year. The government’s decision to introduce draft regulations following the recent Mark Karpeles fiasco where the ex CEO of Mt Gox was arrested by the Japanese authorities. Karpeles was investigated for his role in the collapse of Mt Gox and embezzlement of funds belonging to customers of Mt Gox.
According to the reports, the new regulations will cover the use of bitcoin as a payment option, operation of bitcoin exchanges, startups and more. The whole process will be managed under the guidance of Financial Systems Council, which also happens to watch over the banking, securities and exchange operators in the country. The Japanese Financial Systems Council has already involved itself in a discussion with the bitcoin community members including startups, experts and bitcoin users in general. The discussion was organized to get a better understanding of bitcoin, blockchain and its role in the economy.
Bitcoin regulations has started to gain momentum again. mainly due to the recent turn of events in France which took the lives of hundreds of people and other places in the world. European Union is already reconsidering its previous bitcoin friendly stance after reports emerged that ISIL terrorists might have used bitcoin to fund their attacks on French soil.
A similar regulation has been introduced earlier this year in the State of New York, USA. The US regulation, better known as BitLicense requires bitcoin exchanges and other businesses to adhere to a long list of guidelines which are as stringent as the regulations faced by traditional banks and financial institutions. BitLicense resulted in many companies leaving New York. They stopped operating in the regions that comes under BitLicense. If Japanese government doesn’t consider these factors while drafting the new regulations, they may end up wiping the bitcoin ecosystem away from the face of the country.
Image Source: cityam.com